You’ve taken the time to compare quotes, and now you are ready to buy a life insurance policy. Just wait a minute!
Now that you have a list with all the insurance company names and the premium they will be charging, how do you decide which is the best company? Do you pick a company that is the most affordable and save money or do you choose the most expensive one thinking that they must be offering something good that’s worth the high price tag?
Well, choosing an insurance company is not just about going with the first one that you come across because you think the website seems legit. Today, every business has a website that they use to convince their customers and clients. You need to make sure that when the time comes to make a claim, the insurance company will hand out the money without any delay.
Let’s have a look at some of the important factors that will help you in how to pick the right insurance company:
Check Their Financial Rating
Financial rating is what we like to call the “health” of an insurance company. The question that you need to ask yourself is — can I rely on the company? Whether you are going to buy a life insurance policy that will last for 10 or 30+ years, you must make sure that the claim will fall through.
How does one do that?
There are plenty of ways to find out how the company is doing in the said business industry. There’s the rating you will find at the bottom on the About Us page and any other information regarding the company’s activities will be available on the Policy page. However, you need to dig deeper, which means finding out the company’s rating through external websites. You can get the information you are looking for at these websites: A.M. Best, Standard & Poor’s and Moody’s.
It will take some time because companies list their products under different names. Start with a simple search by writing the company’s name and address in the search bar. If that does not spit out the information you are looking for, then proceed to advanced search.
Screen Company Reviews
Before you proceed to checking out types of life insurance policies the company is offering, there’s one more area that you need to look at. Customer feedbacks are what make and break a company. There are two websites that you can visit to find out what people are saying about the insurance company you have chosen: Better Business Bureau (BBB) and Consumer Affairs. On an average, a company having 5 complaints is fine. Not every company is perfect. If the complaints are more than 20 or if the number is higher than the positive reviews then ditch the company. This insurance agency is not worth your money or time.
Another thing you need to keep an eye out for is the reviews about customer service. Even if the product they are offering is amazing, you insurance agent must be in sync with you. If there is not an open line of communication between him and you, then you won’t be able to maintain your cover.
Ask For Advice When Choosing a Product
A good policy will offer robust coverage, with a few exclusions and expectations, and the choice to renew your coverage in the future. You never know where you might be 3 years from now. There will be dozens of responsibilities that you might be looking after and this shift in your lifestyle will change your needs to. This is why it is important to make sure that the company not only offers you the option to modify your life insurance policy but also gives you benefits for being a loyal customer.
If a policy has the word “guaranteed” or “simplified” in it then steer clear of it. This usually means that the policy offers basic coverage and that does not include much benefits. Discuss your needs with the insurance agent and once you have all the details, make your decision then.
The most important factor that every person looks at when buying an insurance policy is the claim process. Did the insurance agent give you his work number to contact you? Is the company offering more than the basic coverage compared to other insurance companies? Were you warmly greeted when you called them for information?
These are all the things that justify the premium you pay. Don’t go for the lowest premium offering company because they might not be offering good benefits. Don’t fall into the “cheaper-the-better” trap. That’s how fraud insurance companies reel customers in and then try to end your coverage for a rule that you broke.
Find Out How a Claim Is Made
Is the website easy to navigate? Do you see a toll-free number on the website? Is there a physical address written on the website? Do they have an e-mail address? Do they offer a free quote?
Lastly, does everything look trustworthy to you? If the customer service you receive seems genuine and the agent clearly listens to you while crafting the policy, then the claim process will be quite easy for you. There’s always a slight hesitation that we experience even after we have taken a decision. However, if the life insurance company checks out on all platforms, then there’s nothing to worry about.
Other Questions You Need to Ask
Do you give discounts on policy premiums if I buy multiple policies?
For example, some insurance agencies offer discounts when you combine policies including car insurance and home insurance with life insurance.
How often can I contact you if I have to ask something about my policy?
What kind of complaints have you faced in the past?
Some might say that this is a bold statement and shouldn’t be asked by we beg to differ. While you did your research and know here the insurance agency stands, it’s important to find out whether the agent will lie to you or not. Allow them to justify the complaint, so that you can rest easy with your decision.
If you are looking for a high-rated life insurance company, then visit Pawson. The company provides different types of life insurance policies for families and individuals. To know more about their policies, contact them at 203-481-8898.
Digital Marketing Director